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Canadian Investor Eric Sprott Short Research In Motion (RIM), says U.S. Gov't virtually bankrupt
Eric Sprott, Chief Executive Officer & Portfolio Manager of Sprott Asset Management LP, declared he has a short position on Research in Motion (RIM). Says gold will hit $2000 in the next few years and possibly sooner should the U.S. Dollar decline.
LONDON, Ontario – October 7, 2009 – Eric Sprott, Chief Executive Officer & Portfolio Manager of Sprott Asset Management LP, spoke to students and faculty at the University of Western Ontario about the current economic crisis. Hosted by the Economics Students’ Association (ESA), Mr. Sprott is the latest speaker in a series that has previously seen The Right Honourable Paul Martin and TD Bank Chief Economist Don Drummond take the podium.
During his speech, Mr. Sprott revealed that he has taken a short position in one of Canada’s largest companies – Research in Motion. Citing increased competition within the smartphone industry from Apple, maker of the iPhone, and others, Mr. Sprott suggested that RIM will find it increasingly difficult to maintain its current levels of profitability and revenue growth. He believes that these issues are just now beginning to be reflected in RIM’s financial results and that investors should expect more of same going forward.
Known for his bullish take on gold, Mr. Sprott boldly predicted that it would reach $2,000 per ounce within the next ten years. That same day, gold soared to yet-another all-time high of nearly $1,050. Mr. Sprott’s final prediction of the afternoon was that government bailouts and untethered spending, paired with declining tax revenues, has lead to the virtual bankruptcy of the United States government. Mr. Sprott believes that the U.S. Treasury will soon be faced with a failed bond auction.
Mr. Sprott entered the investment industry as a research analyst with Merrill Lynch. In 1981, he founded Sprott Securities (now called Cormark Securities Inc.), which today is one of Canada’s largest independently owned securities firms. After establishing Sprott Asset Management Inc. in December 2001 as a separate entity, Mr. Sprott divested his entire ownership of Sprott Securities to its employees.
For more information, please visit us online at www.westernesa.com.
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The Economics Students’ Association (ESA) is a ratified student-run organization at the University of Western Ontario designed to provide academic support for economics students, and advance the non-curricular knowledge and interests of the community. Throughout the year, the club hosts a series exam study sessions, social events, guest speakers, vocational introductions, recruitment sessions, commerce tutorials, and general meetings. The club also releases a biweekly newspaper, The Economic Outlook, and will be releasing a smartphone application within the coming weeks.
Page Updated Last on: Oct 08, 2009